Options Risk Statement Potential Risk at Expiry & Options Limited Duration Risk Unlike owning or shorting a stock, employing any listed options strategy is by definition governed by a finite duration. The most severe risks associated with general options trading are total loss of capital invested and delivery/assignment risk, all of which can occur in a short period. Investor suitability The use of standardized options and other related derivatives instruments are considered unsuitable for many investors. Investors considering such strategies are encouraged to become familiar with the "Characteristics and Risks of Standardized Options" (an OCC authored white paper on options risks). U.S. investors should consult with a FINRA Registered Options Principal. For detailed information regarding the risks involved with investing in listed options: http:/Awww.theocc.com/about/publications/character-risks.jsp. Valuation & risk Brazil (BRAZIL) We are Marketweight Brazil's EXD with currently wide spreads compensating for the risks. The political crisis concerns investors and growth has been weaker than expected. However, spreads are quite high compared to LatAm investment grades. There are positive and negative tail risks for growth, as a resolution to the political paralysis could bring confidence back up quickly and improve the economic backdrop. With this positive tail risk, and a stronger fiscal adjustment in 2016, economic recovery could start in 2Q16. On the downside, pressures on GDP could increase if the political scenario deteriorates further, with the government failing to approve fiscal measures and/or Brazil shifting to a heterodox policy. Colombia (COLOM) Spreads, which have widened this year adequately compensate investors for the risk, in our view, and leads us to our Marketweight view. Downside risks are a rapid inflation acceleration from pass-through effects, which would be a difficult problem for macroeconomic policy. Also oil price weakness raises risk of r